News 20 December 2016

PRELIMINARY RESULTS

FINANCIAL

Spitfire Oil Limited ("the Company") and its wholly owned subsidiary, Spitfire Oil Pty Ltd ("Spitfire"),
together ("the Group"), recorded a loss before tax for the year ended 30th June 2016 of A$623,614
(2015 A$596,094), after providing $275,194 (2015: $288,217) for diminution in value of the Salmon
Gums tenements. The Group benefited from interest receivable of A$125,328 (2015 A$144,291).
Operating costs of A$473,748 (2015 A$452,168) were incurred. A$275,194 (2015 A$288,217) was
incurred and capitalised on licence fees and tenement management.

The auditors have opined that they have been unable to obtain sufficient evidence to support the
directors’ assessment that the recoverable amount of the mineral resources asset is at least equal to its
carrying value. As with any valuation an assessment of the carrying value / recoverable amount of a
mineral deposit yet to be mined it is highly subjective issue. The directors, supported by independent
advice, remain of the opinion that the recoverable amount of the Salmon Gums tenements is at least
equal to the carrying value in the financial statements, being the same as that reported in the financial
statements to 30th June 2015, upon which the auditors opinion was not qualified, and in light of increase
in the oil price in 2016 of some $10 per barrel.

OPERATIONS

The Salmon Gums Lignite Project remains on hold and the Retention Licence on which it occurs has
been renewed for a further year until September 2017.

The directors continue to pursue potential joint ventures for the development of facilities to process the
Salmon Gums lignite.

Although a resource has been defined, and title to the Salmon Gums mineral tenements has been secured
for the foreseeable future, with active exploration work now suspended and with due consideration to
market prices for fuel products the directors are of the view that the carrying value of the Salmon Gums
mineral tenements continues to be $4,340,000, in conformity with a review undertaken by independent
consultants for the purposes of this report.

The Company has continued to keep its running costs to a minimum while reviewing possible new
projects. A number have been considered during the year but have so far not met requirements.

CHAIRMAN’S STATEMENT

To say the Oil & Gas industry continues to suffer would be an understatement and nowhere more so
than in the junior listed market. The prolonged drop in oil and gas prices has had a profound effect on
the junior exploration and production sector. With the world turning ever more to renewable energy
sources, the implicit and explicit taxation of carbon by a larger number of governments and the over
supply of oil from the income strapped nations of OPEC, Iran and fracked oil from the USA, there
seems little hope of a recovery in the foreseeable future. Nevertheless, for the moment, we continue to
retain our Salmon Gums project as a hedge against a possible rise in the oil price, however unlikely that
seems.

The Company has been investigating acquisitions and projects in the oil and gas sector for some years
now, with no success. The projects have generally been uneconomic or unfinanceable. Now is the time
to be realistic, swallow our pride and focus the Company's attention to projects in the hard rock mining
sector which have a looming supply side deficit or other compelling economic argument. Even this task
will be difficult. Real projects providing real returns are extraordinarily difficult to find and even more
difficult to acquire. Your board has extensive expertise in this area and will endeavour to focus all its
efforts in finding a project worthy of the patience and loyalty the shareholders have shown over these
many years. Hopefully, better news will be forthcoming in 2017.

The full preliminary results are available in Adobe Acrobat PDF format. Please click on the link below: